Latin American Commodity Export Concentration: Is ... - BBVA Research

3 ene. 2013 - This proxy will embody the idea of how far above a country's commodity concentration is compared to the commodity concentration in the world.
1MB Größe 15 Downloads 73 vistas
 

Working Paper Number 13/06

Latin American Commodity Export Concentration: Is There a China Effect? Economic Analysis Hong Kong, January 21, 2013

13/06 Working Paper Hong Kong, January 21, 2013

Latin American Commodity Export Concentration: Is There a China Effect? K.C. Fung 1 , Alicia Garcia-Herrero 2 , Mario Nigrinis Ospina2,3 January 2013

Abstract Given that commodity export concentration is likely to be unhelpful for economic development, we then ask the question of whether Latin America has been experiencing a more pronounced concentration of such exports. We then use different indicators to measure such concentration. Our measurements show that there may be an increase of commodity concentration exports in the last few years of this decade. This phenomenon leads us to ask the question: is the rise of China partly responsible for such an increase? We then ran formal regressions trying to explain an index of commodity export concentration across countries and over time. We control for standard explanatory variables including the relative price index of commodities, the endowment of commodities, the income effects and the quality of infrastructure. We test our hypothesis for alternative periods and using different econometric methodologies. Our results seem to indicate that there is some evidence of the China effect, i.e. the growing importance of China is positively and significantly related to increased commodity export concentration. Keywords: Export concentration, China economic rise, Latin America de-industrialization. JEL: F14, F43.

1: UC, Santa Cruz, CA, USA 2: BBVA Hong Kong 3: Thank you for Carrie Weiwei Liu and Mariana Silva for their research assistance

Page 2

Working Paper

Hong Kong, January 21, 2013

1. Introduction In recent years, there has been an increased interest among academics and policymakers concerning the perceived increase in export concentration and the potential benefits of product diversification (Feenstra and Kee 2004, Greenaway and Kneller 2007). Some of the concerns are particularly focused on the danger of “excessive” specialization of commodity exports by developing countries, including commodity, fuel and food exports from Latin America (Jansen 2004, de Ferranti, Perry, Lederman and Maloney 2002). One major worry is the potential adverse impact of commodity export concentration on the economic growth of developing countries. Why should export diversification of any product group lead to dampened prospects of growth? First, there is the standard “diminishing returns” argument. As a country continues to invest in any particular activity, including the exporting activity in a narrow range of products, the rates of return will generally fall. Second, concentration of exports, whether it is in supposed high-technology items like computer chips or in standardized items such as petroleum, can be subjected to periodic and sometimes unexpected fall in demand and decreased prices and thus export earnings. Such volatility in incomes associated with exports can have negative consequences for the governments in the developing economies if they are trying to plan for expenditures in education, infrastructure, health or any fiscal measures. If excessive export concentration of any kind can be detrimental to the growth of developing countries, what about the concentration of export of commodities and natural resources? There are additional reasons why this is of concerns. First, there is the well-known hypothesis that natural resources can be subjected to a secular decline in their terms-of-trade. The argument is that as countries become richer, they will spend proportionally more on manufactured products. The change in relative demand will lower the terms-of-trade of commodities. Second, if concentration of exports has the tendency to lead of volatility of export revenues, such a feature is viewed as even more pronounced for concentration of exports of commodities and fuels. Natural resource goods tend to be homogenous products, with individual exporting economy facing a fairly inelastic demand. Adverse international market conditions often create negative terms-of-trade shocks and reduced export earnings, which can then lead to lower investment as well as consumption in the developing countries. Third, it is equally well-known that resource-rich economies may face the Dutch disease. A boom in the export sector is usually a beneficial development for a country. But for the case of a resource-exporting economy, it can lead to negative consequences. Booming exports of minerals and fuels are often accompanied by an increase in the real exchange rates of the countries as well as a rise of the economy-wide wage levels. This leads to a loss of competitiveness and tends to shrink the manufacturing sectors, leading to de-industrialization. Fourth, unlike manufactures, commodities may have properties that make their excessive specialization particularly undesirable. For example, it is often argued that minerals, fuels and food have less scope for productivity improvements. Quality improvements are also more likely if the developing countries export manufactured goods or services. Significantly climbing up the value added ladder seems less possible with mineral or oil exports than exports of manufactured goods. Countries that export goods associated with higher productivity levels are seen to be growing faster than countries that export lower-productivity goods (Hausman, Hwang and Rodrik 2006). In addition, concentration in exporting oils and commodities will not give the domestic entrepreneurs the opportunities to realize the gains from exploring and finding out the right varieties of products to export, making economic growth via “selfdiscovery” less likely (Hausmann and Rodrik 2003). Finally some argue that the economic rents generated by the exports and productions of commodities and fuels are often extracted in economies characterized by poor institutions. Consequently, these countries tend to misuse the rents and would not invest significantly to make sure that the economic development of the countries will continue even after the natural resources are depleted. In addition to theoretical and conceptual arguments, there are also empirical studies that link concentration of exports to smaller productivity gains or slower growth of the countries,

Page 3

Working Paper

Hong Kong, January 21, 2013

including work by Al-Marhubi (2000), Feenstra and Kee (2004), Herzer and Nowak-Lehnmann (2006), etc. Thus, our interest in re-examining the export concentration of commodity exports from Latin America is due partly to the growing academic and policy literature on this subject. But on top of that, the research in this paper is also motivated by the observation of the discernible boom in export of natural resources from developing countries, particularly to rapidly growing emerging countries like China. Is this boom in trade in commodities by Latin America and other countries accompanied by a greater concentration of such exports? Furthermore, is the rise of China partly responsible for the increased concentration? If indeed there is enhanced concentration of natural resource exports by Latin America and other developing countries and indeed if this is due to a growing China, policymakers in Latin America should be made aware so that they can more carefully track the development path of China and examine their trade with China more critically. This may have implications concerning what mitigating strategies Latin America should pursue with respect to the potential negative consequences of the growing Latin American-China resource trade. The organization of the paper is as follows. In the next section, we will use descriptive statistics and some standard indicators to examine if indeed there has been a concentration of export of commodities from Latin America. In section 3, we use more formal econometrics to examine if there is a China effect, i.e. if China is in some sense responsible for the growing concentration of export of commodities. In section 4, we conclude.

Page 4

Working Paper

Hong Kong, January 21, 2013

2. Measuring Commodity Export Concentration of Latin America In this section, we focus on some measurements of commodity export concentration of Latin America. We focus on seven Latin American economies: Argentina, Brazil, Chile, Columbia, Mexico, Peru and Venezuela. For comparison, we also look at six South American countries, including all the above Latin American economies except Mexico. As we can see in Chart 1 and Chart 2, the cumulative shares of the top 5 goods exported decline until the end of the twentieth century. In the last decade the shares increased slightly. However when considering only South America, there has been a small reversal starting with the beginning of the twentyfirst century, which coincides with the emergence of China as a world powerhouse. Within the region there are several differences. Brazil and Argentina seem to have the most diversified exports while Venezuela has the strongest concentration. In the case of Colombia, the diversification process apparently had a significant reversal in the last few years; this may be explained by the dramatic decline of exports to Venezuela, mainly manufactured goods. Such exports reached a peak in 2008 (to almost 6 USD billion) but in 2010 they were reduced to only one quarter of the 2008 value (about 1.5 USD billion). The reasons behind the trade collapse are more related to the bad performance of Venezuelan economy (its imports contracted 32% between 2008 and 2010), rather than stronger competition from China or other economies. Suppose we use other metrics, like the Gini index (see annex), similar results emerge: a continuous decline of exports concentration until the end of the twentieth century, and a reversal of this trend since after, in particular in South America. Chart 1

Exports: Top 5 goods cumulative share (% of total exports)

Chart 2

Exports: Top 5 goods cumulative share (% of total exports) 100

80 70 60 50 40 30 20 10 0

90 80 70 60 50 40 30

LATAM

South America

Source: UN Comtrade and BBVA Research

1962 1965 1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010

20

Argentina Chile Mexico Venezuela

Brazil Colombia Peru

Source: UN Comtrade and BBVA Research

Commodities have always taken an important share of Latin American exports although until the 1980’s there was a continued declined in their shares when compared to previous decades (66% in 1989 vs 88% in 1962, see Chart 3 and Chart 4). In the 1990’s, the implementation of NAFTA (North American Free Trade Agreement) introduced a structural change of the Mexican economy which became mainly an exporter of manufactured goods (in 2001 only 15% of total Mexican exports were commodities), whereas in South America the lowest share was reached in the late nineties (63%). During the last 10 years the commodity boom increased again and their share of total exports rose.

Page 5

Working Paper

Hong Kong, January 21, 2013

Chart 3

Commodity exports (% of total exports) 100 90 80 70 60 50 40 30 20 10 0

Chart 4

Commodity exports (% of total exports) 100% 80% 60% 40% 20%

LATAM

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

1962 1965 1968 1971 1974 1977 1980 1984 1987 1990 1993 1996 1999 2002 2005 2009

0%

South America

Source: UN Comtrade and BBVA Research

Argentina Chile Mexico Venezuela

Brazil Colombia Peru

Source: UN Comtrade and BBVA Research

Compared with the rest of the world, South American economies have always been intensive in commodity exports (see Chart 5). Once again it is clear that NAFTA helped change the structure of the Mexican economy. With respect to the South American economies, it is interesting to highlight that it was only since 2008 that their share of commodities exports rose more than the world average. This fact may imply the following: i.

The rise of China and its impact on the commodity markets have a similar effect all over the world until 2007.

ii.

The Chinese hunger for commodities may have had an impact on South American exports since 2008. Once again it is important to highlight the fact that the results for Colombia may be biased by the collapse of its trade with Venezuela.

Chart 5

LATAM´s excessive commodity exports (LATAM commodity exports share vs World average) 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

-20%

Argentina

Brazil

Chile

Colombia

Mexico

Peru

Venezuela

Source: UN Comtrade and BBVA Research

The U.S. is still, by far, the largest export destination for Latin American exports. The rise of China is dramatic and in 2010 it almost caught up with the European Union (Euro Zone + UK) as the region’s second export partner. Commodities are about the half of total exports to the US, the European Union and China (see Chart 6 and Chart 7).

Page 6

Working Paper

Hong Kong, January 21, 2013

Chart 7

US, EU and China: total imports from LA( TAM 7 (in USD ) billion)

Chart 6

Total imports from LATAM 7 (in USD billion)

CN

EU

US

Commodities

Source: UN Comtrade and BBVA Research

2010

2009

2008

2007

2000

2010

2009

2007

2008

2006

2005

2004

2003

2002

2001

2000

0

2006

50

2005

100

2004

150

2003

250 200

2002

300

2001

550 500 450 400 350 300 250 200 150 100 50 0

350

Non commodities

Source: UN Comtrade and BBVA Research

For the case of South America, although the U.S. is also the top export destination, the difference with the EU and China is not as large. The rise of China is remarkable and it may have become the second most important destination in 2011, surpassing the EU, and can become the top destination in the near future. Commodities dominate South American exports flows towards the three economies. The catching up process of China as one of the top export destinations is not only due to its rapid economic growth but also by the sharp decline of exports to the U.S. and the EU with the economic crisis in 2009. Hence Chinese commodity demand can be considered as a buffer which has compensated the negative effects of the world crisis and may explain why South America suffered a lower negative impact and the region also recovered very fast in terms of its GDP (gross domestic product) growth (See Table 1). Table 1

South America: GDP Growth rates Argentina 8% 9% 7% 1% 9% 9%

2006 2007 2008 2009 2010 2011

Brazil 4% 6% 5% 0% 8% 3%

Chile 6% 5% 3% -1% 6% 6%

Colombia 7% 7% 4% 2% 4% 6%

Mexico 5% 3% 1% -6% 6% 4%

Peru 8% 9% 10% 1% 9% 7%

Venezuela 10% 9% 5% -3% -2% 4%

Source: Haver

Chart 8

Chart 9

120

300

100

250

80

200

60

150

40

100

20

50

0

0

CN

EU

Source: UN Comtrade and BBVA Research

US

Commodities

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

2010

2009

2008

US, EU and China: total imports from South America* (in USD billion)

2007

2006

2005

2004

2003

2002

2001

2000

Total imports from South America* (in USD billion)

Non commodities

Source: UN Comtrade and BBVA Research

Page 7

Working Paper

Hong Kong, January 21, 2013

When analyzing intraregional trade (for Latin America and also South America) it is clear that export flows are mainly related to manufactured goods. At the same time there has been an important rise of Chinese imports; however the Chinese imports does not seem to have had a negative impact on intraregional flows. Chart 10

Chart 11

Commodities Non Commodities China Source: UN Comtrade and BBVA Research

2010

2009

2007

2008

2006

2005

2004

0 2003

0

2000

20

2010

20

2009

40

2008

40

2007

60

2005

60

2006

80

2004

80

2003

100

2001

100

2002

120

2000

120

2002

South America: intraregional trade and Sino imports (in USD billion)

2001

LATAM 7: intraregional trade and Sino imports (in USD billion)

Commodities Non Commodities China Source: UN Comtrade and BBVA Research

Page 8

Working Paper

Hong Kong, January 21, 2013

3. Empirical Results In this section, we present the specification of our regression equation and the empirical results. Here we would like to test if a measure of the export concentration of commodities is related to the growing importance of China, after controlling for other relevant determinants. Our favored measure of export concentration of commodities is the log of a country i’s share of commodity exports out of total exports relative to the same share of the world for year t. In the tables for regression results below, this is denoted as Com Exp Concentration. This proxy will embody the idea of how far above a country’s commodity concentration is compared to the commodity concentration in the world. The independent explanatory variables we have chosen include a relative price term, which is measured by the log of commodity price index relative to the consumer price index in year t (we show this as Price in the tables of regression results). Another explanatory variable captures the endowment effect of a country in year t. The proxy we have used is the log of the ratio of value added in commodities out of GDP relative to a similar ratio in the world in year t (denoted as Endowment). For the income effect, we use the log of GDP per capita in country i relative to the world GDP per capita in year t (denoted as Income). To capture the difficulty of exporting commodities, we use a dummy variable for infrastructure of country i in year t (denoted as infrastructure). The explanatory variable of interest is our China effect. We use two proxies in our regressions. The first proxy is the log of the growth rate of exports of commodities to China by country i in year t (denoted as g). The second proxy is the log of the ratio of imports of commodities by China out of Chinese total imports relative to the same ratio by the world (represented by CN). The description, data sources, years of coverage and the number of observations are described in the Annex (Table 7). The econometric regressions using the generalized least squares are reported below. Most of the explanatory variables are significant and have the expected signs. The relative price effect is positive and significant, indicating that a higher relative price leads to more commodity export concentration. The endowment variable is also significant and has the expected positive sign. The income effect is only significant for the latest decade. The infrastructure dummy has the wrong sign, however. The China effect, as captured by CN, is consistently positive and significant, indicating that China is indeed responsible for the higher concentration of commodity exports. The other proxy, g, is also positive and significant, at least for 1980-2010 and for 1990-2010. Overall the results from this set of regressions indicate that there is indeed a China effect, with the proxies showing that after we control for the standard explanatory variables, the growing importance of China in importing commodities lead to more concentration of such exports by other countries. Table 2

Regression Results Label Price Endowment Income infrastructure g CN _cons

1980-2010

GLS 1990-2010

2000-2010

0.0922264*** 0.2692312*** 0.099599*** 0.2990624*** 0.1239038*** 0.3633548*** (0.0084842) (0.020433) (0.0081242) (0.0195782) (0.0067679) (0.0162077) 0.8570244*** 0.8019728*** 0.9880214*** 0.9924592*** 1.367229*** 1.356852*** (0.0469829) (0.0425693) (0.0479426) (0.0448415) (0.0298013) (0.0313704) -0.0039013 -0.00479 0.0049387 0.0033512 0.0434126*** 0.0416442*** (0.0046766) (0.0044361) (0.0051616) (0.0050045) (0.0050842) (0.0050641) -0.0763488*** -0.0781631*** -0.0630236*** -0.0510824** -0.0788689*** -0.0613297** (0.0215151) (0.021573) (0.0222208) (0.0214127) (0.0247188) (0.0260994) 8.69 e-07** 1.09 e-06** 1.18 e-06 (4.45 e-07) (4.41 e-07) (1.01 e-06) 3.711757*** 4.069982*** 4.906383*** (0.2617042) (0.2500846) (0.2093698) 0.0209092 -0.2612549*** 0.0025052 -0.3372118*** -0.0222914 -0.4350066*** (0.0230092) (0.0368113) (0.0224505) (0.0348343) (0.0255795) (0.0337675)

Source: BBVA Research

For robustness, we ran our regressions using alternative methodologies, including fixed (FE) and random effects (RE). The results are much less satisfactory. Some of the variables have the Page 9

Working Paper

Hong Kong, January 21, 2013

wrong sign. For example, for the fixed effect model, a higher commodity relative price is associated with a smaller commodity export concentration. For the China effect as capture by g and CN, they are mostly insignificant. When it is significant, it has a negative sign. Given that our observation in the last section shows that there seems to be more pronounced concentration for the period 2000-2010, we decided to rerun the fixed effect model just for this period, but we disaggregate the country sample into industrialized economies and emerging economies. The results are somewhat surprising. Instead of showing the rise of China being associated with greater commodity concentration exports from emerging countries (including Latin American countries), it seems to indicate that the China effect is positive and significant for exports from industrialized economies. Table 3

Regression Results Label Price Endowment Income

1980-2010 -0.0158391*** -0.0318078*** (0.0060941) (0.0066558) 1.067295*** 0.5412975*** (0.667407) (0.0612575) -0.023905*** -0.045213*** (0.0073996) (0.007595)

FE 1990-2010 -0.0074405 (0.0066544) 0.4019629*** (0.0657458) -0.046999*** (0.0075525)

2000-2010

-0.0073458 -0.0245888*** -0.0253686*** (0.006449) (0.0066343) (0.0067118) 0.3823712*** -0.0047227 0.0195118 (0.0619744) (0.0935897) (0.0946744) -0.041785*** -0.0175196* -0.0210533** (0.0071464) (0.0105598) (0.0104352)

infrastructure 1.48 e-06 (1.47 e-06)

g CN

0.0836848*** (0.0089513)

_cons

1.19 e-06 (1.08 e-06) -0.0787518 (0.0680428) 0.1435754*** (0.0091757)

1.39 e-06 (1.14 e-06)

-0.3027918*** (0.0792215) 0.1347734*** 0.1273918*** (0.0092467) (0.0088987)

0.1654861*** (0.0112563)

0.1383087 (0.1174935) 0.1624668*** (0.0112385)

Source: BBVA Research

Table 4

Regression Results Label Price Endowment Income

All Sample Economies -0.0245888*** -0.0253686*** (0.0066343) (0.0067118) -0.0047227 0.0195118 (0.0935897) (0.0946744) -0.0175196* -0.0210533** (0.0105598) (0.0104352)

FE 2000-2010 Industrialized economies -0.024414*** -0.0286666*** (0.0056475) (0.0058234) -0.1811871 -0.0916067 (0.2246076) (0.2325599) -0.0183657 -0.0138075 (0.0147618) (0.0149284)

Emerging Economies -0.0242622** (0.0123054) 0.007057 (0.1209397) -0.01761 (0.0153615)

-0.0232163* (0.0121824) 0.0251222 (0.122506) -0.0226299 (0.0153108)

infrastructure g

1.39 e-06 (1.14 e-06)

CN _cons

0.1654861*** (0.0112563)

0.0032283*** (0.0012253) 0.1383087 (0.1174935) 0.1624668*** (0.0112385)

0.0665835*** (0.021184)***

1.38e-06 (1.37e-06) 0.2038857* (0.1142871) 0.0691247*** (0.0213565)

0.2317224*** (0.0272624)

0.0908027 (0.1887663) 0.2170199*** (0.026968)

Source: BBVA Research

For the random effects model, again we have some variables that have significant coefficients that have the wrong signs. This is the case with the relative price variable. For the proxies of the China effect, the variables seem to be rather unstable, with g being insignificant and CN significant and positive only for 2000-2010 but negative and significant for 1990-2010.

Page 10

Working Paper

Hong Kong, January 21, 2013

Table 5

Regression Results Label Price Endowment Income infrastructure g CN _cons

1980-2010

RE 1990-2010

-0.0165178*** -0.032876*** -0.0062071 -0.006034 (0.0060944) (0.0066821) (0.0066506) (0.0064719) 1.08733*** 0.6191277*** 0.5286441*** 0.5044783*** (0.0616423) (0.0574243) (0.0616843) (0.0586518) -0.0179565** -0.0376366*** -0.0386657*** -0.0343029*** (0.0070827) (0.0072727) (0.0072856) (0.0069279) 0.0023381 -0.006191 -0.0142693 -0.0121067 (0.0481587) (0.0483001) (0.0491958) (0.0479492) 1.53 e-06 1.33 e-06 (1.47 e-06) (1.09 e-06) -0.0777344 -0.2913823*** (0.0683115) (0.0799614) 0.0847255** 0.143698*** 0.13871*** 0.1289485*** (0.04029) (0.0399991) (0.041511) (0.0400562)

2000-2010 -0.0175633*** (0.0066259) 0.3457998*** (0.0849001) -0.0045935 (0.010023) -0.1084829** (0.052335) 1.28 e-06 (1.18 e-06)

-0.018851*** (0.006778) 0.413070*** (0.0849369) -0.0057928 (0.0099032) -0.0839928* (0.0493838)

0.2120234* (0.122474) 0.2079469*** 0.184872*** (0.0442074) (0.0414861)

Source: BBVA Research

Overall, our formal econometric estimations suggest some evidence that the rise of China is positively associated with increased commodity export concentration. However, the results are not totally robust, since if we adopt a different methodology, then the estimations tend to show insignificant results.

Page 11

Working Paper

Hong Kong, January 21, 2013

4. Conclusion In this paper, we focus on the research question of whether there has been an increase of commodity export concentration by Latin American economies. First we provide a brief survey of the theoretical and empirical literature on the potential benefits of export diversification. There seems to be a growing consensus that excessive concentration of exports are not entirely beneficial for the economies development of developing countries, particularly the exports are commodities and natural resources. Given that commodity export concentration is likely to be unhelpful for economic development, we then ask the question of whether Latin America has been experiencing a more pronounced concentration of such exports. We then use different indicators to measure such concentration. Our measurements show that there may be an increase of commodity concentration exports in the last few years of this decade. This phenomenon leads us to ask the question: is the rise of China partly responsible for such an increase? We then ran formal regressions trying to explain an index of commodity export concentration across countries and over time. We control for standard explanatory variables including a relative price index for commodities, the endowment of commodities, the income effects and the quality of infrastructure. We test our hypothesis for alternative periods and using different econometric methodologies. Our results seem to indicate that there is some evidence of the China effect, i.e. the growing importance of China is positively and significantly related to increased commodity export concentration.

Page 12

Working Paper

Hong Kong, January 21, 2013

Annex Chart 12

Chart 13

1.00 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55 0.50

1.00 0.95 0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55 2002

2006

2010 2010

1994

Brazil Colombia Mexico

Source: UN Comtrade and BBVA Research

Source: UN Comtrade and BBVA Research

Chart 14

Chart 15

1.00

1.00

0.95

0.95

0.90

0.90

0.85

0.85

Gini Index Latam vs South America (by partner)

1998

1986

1990

1978

1982

1974

Argentina Chile Peru Venezuela

2002

LATAM 7

1970

1962

1966

2010

2002

2006

1994

1998

Gini Index (country-specific, by commodity)

2006

South America

1990

1982

1986

1974

1978

1970

1962

1966

Gini Index Latam vs South America (by commodity)

Gini Index (country-specific, by partner)

0.80

0.80

South America

Source: UN Comtrade and BBVA Research

LATAM 7

Argentina Chile Mexico Venezuela

1994

1998

1986

1990

1982

1978

1974

1970

1962

0.75

1966

2010

2006

1998

2002

1994

1986

1990

1978

1982

1974

1970

1962

1966

0.75

Brazil Colombia Peru

Source: UN Comtrade and BBVA Research

Page 13

Working Paper

Hong Kong, January 21, 2013

Table 6

LATAM Top 5 Commodities Exports to the World 1 2 3 4 5

1 2 3 4 5

1962-1970 Petroleum and products Coffee, tea, cocoa, spices Non ferrous metals Textile fibres, not manufactured Cereals and cereal preparations

1971-1980 Petroleum and products Coffee, tea, cocoa, spices Non ferrous metals Metalliferous ores and metal scrap Cereals and cereal preparations

1962-1970 Cereals and cereal preparations Meat and meat preparations Textile fibres, not manufactured Feed. Stuff for animals Fixed vegetable oils and fats

1971-1980 Cereals and cereal preparations Meat and meat preparations Fruit and vegetables

1962-1970 Coffee, tea, cocoa, spices Textile fibres, not manufactured Metalliferous ores and metal scrap Sugar, sugar preparations Wood, lumber and cork

1971-1980 Coffee, tea, cocoa, spices Metalliferous ores and metal scrap Feed. Stuff for animals Sugar, sugar preparations Machinery, other than electric

1962-1970 Non ferrous metals Metalliferous ores and metal scrap Crude fertilizers and crude minerals Fruit and vegetables

1971-1980 Non ferrous metals Metalliferous ores and metal scrap Fruit and vegetables

Feed. Stuff for animals

Feed. Stuff for animals

1962-1970 Coffee, tea, cocoa, spices Petroleum and products Textile fibres, not manufactured Fruit and vegetables

1971-1980 Coffee, tea, cocoa, spices Petroleum and products Textile yarn, fabrics

Feed. Stuff for animals Fixed vegetable oils and fats

1981-1990 Petroleum and products Coffee, tea, cocoa, spices Non ferrous metals Machinery, other than electric Iron and steel

1991-2000 Petroleum and products Electrical machinery

2001-2010 Petroleum and products Electrical machinery

2010 Petroleum and products Electrical machinery

Transport equipment Machinery, other than electric Non ferrous metals

Transport equipment Machinery, other than electric Metalliferous ores and metal scrap

Transport equipment Metalliferous ores and metal scrap Machinery, other than electric

2001-2010 Feed. Stuff for animals Petroleum and products Transport equipment

2010 Feed. Stuff for animals Transport equipment

Argentina 1981-1990 1991-2000 Cereals and cereal Cereals and cereal preparations preparations Feed. Stuff for Petroleum and animals products Fixed vegetable oils Feed. Stuff for and fats animals Meat and meat Fixed vegetable oils preparations and fats Oil seeds, oil nuts Transport equipment and oil kernels

Cereals and cereal preparations Fixed vegetable oils and fats

Cereals and cereal preparations Oil seeds, oil nuts and oil kernels Fixed vegetable oils and fats

Brazil 1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

Pulp and paper

Sugar, sugar preparations

Textile fibres, not manufactured Non metallic mineral manufactures

1962-1970 Textile fibres, not manufactured Non ferrous metals

1971-1980 Petroleum and products Fruit and vegetables

Sugar, sugar preparations Fruit and vegetables

Coffee, tea, cocoa, spices Non ferrous metals

Coffee, tea, cocoa, spices

Fish and fish preparations

1981-1990 Coffee, tea, cocoa, spices Iron and steel Transport equipment Metalliferous ores and metal scrap Machinery, other than electric

1991-2000 Transport equipment

2001-2010 Transport equipment

Iron and steel

Metalliferous ores and metal scrap Petroleum and products Machinery, other than electric Meat and meat preparations

Machinery, other than electric Metalliferous ores and metal scrap Coffee, tea, cocoa, spices

2010 Metalliferous ores and metal scrap Petroleum and products Transport equipment Meat and meat preparations Sugar, sugar preparations

Chile 1981-1990 1991-2000 Non ferrous metals Non ferrous metals Metalliferous ores Metalliferous ores and metal scrap and metal scrap Fruit and vegetables Fruit and vegetables

2001-2010 Non ferrous metals Metalliferous ores and metal scrap Fruit and vegetables

2010 Non ferrous metals Metalliferous ores and metal scrap Fruit and vegetables

Feed. Stuff for animals Pulp and paper

Fish and fish preparations Pulp and paper

Fish and fish preparations Pulp and paper

2001-2010 Petroleum and products Coal, coke and briquettes Coffee, tea, cocoa, spices Iron and steel

2010 Petroleum and products Coal, coke and briquettes Coffee, tea, cocoa, spices Crude animal and vegetable materials Iron and steel

Fish and fish preparations Pulp and paper

Colombia 1981-1990 1991-2000 Coffee, tea, cocoa, Petroleum and spices products Petroleum and Coffee, tea, cocoa, products spices Fruit and vegetables Coal, coke and briquettes Coal, coke and Fruit and vegetables briquettes Clothing Clothing Mexico 1981-1990 1991-2000 Petroleum and Electrical machinery products Machinery, other Transport equipment than electric Transport equipment Machinery, other than electric Electrical machinery Petroleum and products Fruit and vegetables Clothing

Crude animal and vegetable materials 2001-2010 Electrical machinery

2010 Electrical machinery

Transport equipment

Transport equipment

Petroleum and products Machinery, other than electric Scientif & control instrum

Petroleum and products Machinery, other than electric Scientif & control instrum Continued on next page

Page 14

Working Paper

Hong Kong, January 21, 2013

Table 6

LATAM Top 5 Commodities Exports to the World (Cont.) Peru 1 2 3 4 5

1 2 3 4 5

1962-1970 Non ferrous metals

1971-1980 Non ferrous metals

Feed. Stuff for animals Metalliferous ores and metal scrap Textile fibres, not manufactured Sugar, sugar preparations

Metalliferous ores and metal scrap Feed. Stuff for animals Petroleum and products Coffee, tea, cocoa, spices

1962-1970 Petroleum and products Metalliferous ores and metal scrap Iron and steel

1971-1980 Petroleum and products Metalliferous ores and metal scrap Gas, natural and manufactured Non ferrous metals

Coffee, tea, cocoa, spices Gas, natural and manufactured

Coffee, tea, cocoa, spices

1981-1990 Metalliferous ores and metal scrap Non ferrous metals

2001-2010 Metalliferous ores and metal scrap Non ferrous metals

2010 Metalliferous ores and metal scrap Non ferrous metals

Petroleum and products Feed. Stuff for animals Clothing

Petroleum and products Feed. Stuff for animals Fruit and vegetables

Venezuela 1981-1990 1991-2000 Petroleum and Petroleum and products products Non ferrous metals Non ferrous metals

2001-2010 Petroleum and products Iron and steel

2010 Petroleum and products Iron and steel

Iron and steel

Iron and steel

Non ferrous metals

Metalliferous ores and metal scrap Chemical elements and compounds

Chemical elements and compounds Transport equipment

Chemical elements and compounds Transport equipment

Metalliferous ores and metal scrap Non ferrous metals

Petroleum and products Feed. Stuff for animals Coffee, tea, cocoa, spices

1991-2000 Non ferrous metals Metalliferous ores and metal scrap Feed. Stuff for animals Petroleum and products Clothing

Chemical elements and compounds

Source: UN Comtrade and BBVA Research

Table 7

Description of Variables and Sources of Data Variables

Label Com Exp Concentration

Source Comtrade

Period 19802010

Observ. 1925

⎛ Com price index ⎞ ⎜⎜ ⎟⎟ CPI ⎝ ⎠t

Price

Haver & Comtrade

19802010

31

⎛ Value added in Com World value added in Com ⎞ ⎜⎜ ⎟⎟ − ⎝ Value added in GDP World value added in GDP ⎠ it

Endowment

UN Data

19802010

2177

⎛ ⎞ GDPpc ⎜⎜ ln ( ) ⎟⎟ World GDPpc ⎝ ⎠ it

Income

IMF

19802010

2171

(Dummy of

Infrastructure

2010

73

g

Global Competitiveness Report Comtrade

19802010

1657

CN

Comtrade

19802010

31

Dependent

⎛ Com Exports World Com Exports ⎞ ⎜⎜ Total Exports − World Total Exports ⎟⎟ ⎠ it ⎝

Independent

Quality of Infrastruc ture Index 2010 )i

(=1 if equal to or above average; =0 if below average)

(Growth

Rate of Com Export To China

)

⎛ CN com imports World com imports ⎞ ⎟⎟ ⎜⎜ − ⎝ CN total imports World total imports ⎠ t

it

Source: BBVA Research

Page 15

Working Paper

Hong Kong, January 21, 2013

References Al-Marhubi, F., 2000, “export Diversification and Growth: An Empirical Investigation,” Applied Economics Letters 7: 559-562. De Ferranti, David, Guillermo E. Perry, Daniel Lederman and William F. Maloney, 2002, From Natural Resources to the Knowledge Economy, Washington, DC: World Bank Feenstra, Robert and Hiau Loo Kee, 2004, “Export Variety and Country Productivity,” Policy Research Working Paper 3412, World Bank, Washington, D.C. Greenaway, David and Robert Kneller, 2007, “Firm Heterogeneity, Exporting and Foreign Direct Investment, “ Economic Journal 117 (517), 134-161. Hausmann, Ricardo and Dani Rodrik, 2003, “Economic Development as Self-Discovery,” Journal of Development Economics 72: 603-633. Hausmann, Ricardo, Jason Hwang and Dani Rodrik, 2006,” What You Export Matters,” CEPR Discussion Paper 5444, Centre for Economic Policy Research, London. Herzer, Dierk and Felicitas Nowak-Lehnmann, 2006, “What Does Export Diversification Do for Growth? An Econometric Analysis,” Applied Economics 38: 1825-1838. Jansen, Marion, 2004, “Income Volatility in Small and Developing Economies: Export Concentration Matters,” Discussion Paper 3, World Trade Organization, Geneva.

Page 16

Working Paper

Hong Kong, January 21, 2013

Working Papers 2013 13/01 Hugo Perea, David Tuesta y Alfonso Ugarte: Lineamientos para impulsar el Crédito y el Ahorro. Perú. 13/02 Ángel de la Fuente: A mixed splicing procedure for economic time series. 13/03 Ángel de la Fuente: El sistema de financiación regional: la liquidación de 2010 y algunas reflexiones sobre la reciente reforma. 13/04 Santiago Fernández de Lis, Adriana Haring, Gloria Sorensen, David Tuesta, Alfonso Ugarte: Lineamientos para impulsar el proceso de profundización bancaria en Uruguay. 13/05 Matt Ferchen, Alicia Garcia-Herrero and Mario Nigrinis: Evaluating Latin America’s Commodity Dependence on China. 13/06 K.C. Fung, Alicia Garcia-Herrero, Mario Nigrinis Ospina: Latin American Commodity Export Concentration: Is There a China Effect?

2012 12/01 Marcos Dal Bianco, Máximo Camacho and Gabriel Pérez-Quiros: Short-run forecasting of the euro-dollar exchange rate with economic fundamentals. 12/02 Guoying Deng, Zhigang Li and Guangliang Ye: Mortgage Rate and the Choice of Mortgage Length: Quasi-experimental Evidence from Chinese Transaction-level Data. 12/03 George Chouliarakis and Mónica Correa-López: A Fair Wage Model of Unemployment with Inertia in Fairness Perceptions. 12/04 Nathalie Aminian, K.C. Fung, Alicia García-Herrero, Francis NG: Trade in services: East Asian and Latin American Experiences. 12/05 Javier Alonso, Miguel Angel Caballero, Li Hui, María Claudia Llanes, David Tuesta, Yuwei Hu and Yun Cao: Potential outcomes of private pension developments in China (Chinese Version). 12/06 Alicia Garcia-Herrero, Yingyi Tsai and Xia Le: RMB Internationalization: What is in for Taiwan?. 12/07 K.C. Fung, Alicia Garcia-Herrero, Mario Nigrinis Ospina: Latin American Commodity Export Concentration: Is There a China Effect?. 12/08 Matt Ferchen, Alicia Garcia-Herrero and Mario Nigrinis: Evaluating Latin America’s Commodity Dependence on China. 12/09 Zhigang Li, Xiaohua Yu, Yinchu Zeng and Rainer Holst: Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders. 12/10 Maximo Camacho and Jaime Martinez-Martin: Forecasting US GDP from small-scale factor models in real time. 12/11 J.E. Boscá, R. Doménech and J. Ferria: Fiscal Devaluations in EMU. 12/12 Ángel de la Fuente and Rafael Doménech: The financial impact of Spanish pension reform: A quick estimate. 12/13 Biliana Alexandrova-Kabadjova, Sara G. Castellanos Pascacio, Alma L. GarcíaAlmanza: The Adoption Process of Payment Cards -An Agent- Based Approach . 12/14 Biliana Alexandrova-Kabadjova, Sara G. Castellanos Pascacio, Alma L. GarcíaAlmanza: El proceso de adopción de tarjetas de pago: un enfoque basado en agentes.

Page 17

Working Paper

Hong Kong, January 21, 2013

12/15 Sara G. Castellanos, F. Javier Morales y Mariana A. Torán: Análisis del uso de servicios financieros por parte de las empresas en México: ¿Qué nos dice el Censo Económico 2009? 12/16 Sara G. Castellanos, F. Javier Morales y Mariana A. Torán: Analysis of the Use of Financial Services by Companies in Mexico: What does the 2009 Economic Census tell us? 12/17 R. Doménech: Las Perspectivas de la Economía Española en 2012: 12/18 Chen Shiyuan, Zhou Yinggang: Revelation of the bond market (Chinese version). 12/19 Zhouying Gang, Chen Shiyuan: On the development strategy of the government bond market in China (Chinese version). 12/20 Angel de la Fuente and Rafael Doménech: Educational Attainment in the OECD, 19602010. 12/21 Ángel de la Fuente: Series enlazadas de los principales agregados nacionales de la EPA, 1964-2009. 12/22 Santiago Fernández de Lis and Alicia Garcia-Herrero: Dynamic provisioning: a buffer rather than a countercyclical tool?. 12/23 Ángel de la Fuente: El nuevo sistema de financiación de las Comunidades Autónomas de régimen común: un análisis crítico y datos homogéneos para 2009 y 2010. 12/24 Beatriz Irene Balmaseda Pérez y Lizbeth Necoechea Hasfield: Metodología de estimación del número de clientes del Sistema Bancario en México. 12/25 Ángel de la Fuente: Series enlazadas de empleo y VAB para España, 1955-2010. 12/26 Oscar Arce, José Manuel Campa y Ángel Gavilán: Macroeconomic Adjustment under Loose Financing Conditions in the Construction Sector. 12/27 Ángel de la Fuente: Algunas propuestas para la reforma del sistema de financiación de las comunidades autónomas de régimen común. 12/28 Amparo Castelló-Climent, Rafael Doménech: Human Capital and Income Inequality: Some Facts and Some Puzzles. 12/29 Mónica Correa-López y Rafael Doménech: La Internacionalización de las Empresas Españolas. 12/30 Mónica Correa-López y Rafael Doménech: The Internationalisation of Spanish Firms. 12/31 Robert Holzmann, Richard Hinz and David Tuesta: Early Lessons from Country Experience with Matching Contribution Schemes for Pensions. 12/32 Luis Carranza, Ángel Melguizo and David Tuesta: Matching Contributions for Pensions in Colombia, Mexico, and Peru: Experiences and Prospects. 12/34 Luis Carranza, Ángel Melguizo y David Tuesta: Aportaciones compartidas para pensiones en Colombia, México y Perú: Experiencias y perspectivas.

2011 11/01 Alicia García Herrero: Hong Kong as international banking center: present and future. 11/02 Arnoldo López-Marmolejo: Effects of a Free Trade Agreement on the Exchange Rate Pass-Through to Import Prices. 11/03 Angel de la Fuente: Human capital and productivity. 11/04 Adolfo Albo y Juan Luis Ordaz Díaz: Los determinantes de la migración y factores de la expulsión de la migración mexicana hacia el exterior, evidencia municipal.

Page 18

Working Paper

Hong Kong, January 21, 2013

11/05 Adolfo Albo y Juan Luis Ordaz Díaz: La Migración Mexicana hacia los Estados Unidos: Una breve radiografía. 11/06 Adolfo Albo y Juan Luis Ordaz Díaz: El Impacto de las Redes Sociales en los Ingresos de los Mexicanos en EEUU. 11/07 María Abascal, Luis Carranza, Mayte Ledo y Arnoldo López Marmolejo: Impacto de la Regulación Financiera sobre Países Emergentes. 11/08 María Abascal, Luis Carranza, Mayte Ledo and Arnoldo López Marmolejo: Impact of Financial Regulation on Emerging Countries. 11/09 Angel de la Fuente y Rafael Doménech: El impacto sobre el gasto de la reforma de las pensiones: una primera estimación. 11/10 Juan Yermo: El papel ineludible de las pensiones privadas en los sistemas de ingresos de jubilación. 11/11 Juan Yermo: The unavoidable role of private pensions in retirement income systems. 11/12 Angel de la Fuente and Rafael Doménech: The impact of Spanish pension reform on expenditure: A quick estimate. 11/13 Jaime Martínez-Martín: General Equilibrium Long-Run Determinants for Spanish FDI: A Spatial Panel Data Approach. 11/14 David Tuesta: Una revisión de los sistemas de pensiones en Latinoamérica. 11/15 David Tuesta: A review of the pension systems in Latin America. 11/16 Adolfo Albo y Juan Luis Ordaz Díaz: La Migración en Arizona y los efectos de la Nueva Ley “SB-1070”. 11/17 Adolfo Albo y Juan Luis Ordaz Díaz: Los efectos económicos de la Migración en el país de destino. Los beneficios de la migración mexicana para Estados Unidos. 11/18 Angel de la Fuente: A simple model of aggregate pension expenditure. 11/19 Angel de la Fuente y José E. Boscá: Gasto educativo por regiones y niveles en 2005. 11/20 Máximo Camacho and Agustín García Serrador: The Euro-Sting revisited: PMI versus ESI to obtain euro area GDP forecasts. 11/21 Eduardo Fuentes Corripio: Longevity Risk in Latin America. 11/22 Eduardo Fuentes Corripio: El riesgo de longevidad en Latinoamérica. 11/23 Javier Alonso, Rafael Doménech y David Tuesta: Sistemas Públicos de Pensiones y la Crisis Fiscal en la Zona Euro. Enseñanzas para América Latina. 11/24 Javier Alonso, Rafael Doménech y David Tuesta: Public Pension Systems and the Fiscal Crisis in the Euro Zone. Lessons for Latin America. 11/25 Adolfo Albo y Juan Luis Ordaz Díaz: Migración mexicana altamente calificadaen EEUU y Transferencia de México a Estados Unidos a través del gasto en la educación de los migrantes. 11/26 Adolfo Albo y Juan Luis Ordaz Díaz: Highly qualified Mexican immigrants in the U.S. and transfer of resources to the U.S. through the education costs of Mexican migrants. 11/27 Adolfo Albo y Juan Luis Ordaz Díaz: Migración y Cambio Climático. El caso mexicano. 11/28 Adolfo Albo y Juan Luis Ordaz Díaz: Migration and Climate Change: The Mexican Case. 11/29 Ángel de la Fuente y María Gundín: Indicadores de desempeño educativo regional: metodología y resultados para los cursos 2005-06 a 2007-08.

Page 19

Working Paper

Hong Kong, January 21, 2013

11/30 Juan Ramón García: Desempleo juvenil en España: causas y soluciones. 11/31 Juan Ramón García: Youth unemployment in Spain: causes and solutions. 11/32 Mónica Correa-López and Beatriz de Blas: International transmission of medium-term technology cycles: Evidence from Spain as a recipient country. 11/33 Javier Alonso, Miguel Angel Caballero, Li Hui, María Claudia Llanes, David Tuesta, Yuwei Hu and Yun Cao: Potential outcomes of private pension developments in China. 11/34 Javier Alonso, Miguel Angel Caballero, Li Hui, María Claudia Llanes, David Tuesta, Yuwei Hu and Yun Cao: Posibles consecuencias de la evolución de las pensiones privadas en China. 11/35 Enestor Dos Santos: Brazil on the global finance map: an analysis of the development of the Brazilian capital market. 11/36 Enestor Dos Santos, Diego Torres y David Tuesta: Una revisión de los avances en la inversión en infraestructura en Latinoamerica y el papel de los fondos de pensiones privados. 11/37 Enestor Dos Santos, Diego Torres and David Tuesta: A review of recent infrastructure investment in Latin America and the role of private pension funds. 11/ 38 Zhigang Li and Minqin Wu: Estimating the Incidences of the Recent Pension Reform in China: Evidence from 100,000 Manufacturers.

2010 10/01 Carlos Herrera: Rentabilidad de largo plazo y tasas de reemplazo en el Sistema de Pensiones de México. 10/02 Javier Alonso, Jasmina Bjeletic, Carlos Herrera, Soledad Hormazabal, Ivonne Ordóñez, Carolina Romero, David Tuesta and Alfonso Ugarte: Projections of the Impact of Pension Funds on Investment in Infrastructure and Growth in Latin America. 10/03 Javier Alonso, Jasmina Bjeletic, Carlos Herrera, Soledad Hormazabal, Ivonne Ordóñez, Carolina Romero, David Tuesta and Alfonso Ugarte: A balance of Pension Fund Infrastructure Investments: The Experience in Latin America. 10/04 Mónica Correa-López y Ana Cristina Mingorance-Arnáiz: Demografía, Mercado de Trabajo y Tecnología: el Patrón de Crecimiento de Cataluña, 1978-2018. 10/05 Soledad Hormazabal D.: Gobierno Corporativo y Administradoras de Fondos de Pensiones (AFP). El caso chileno. 10/06 Soledad Hormazabal D.: Corporate Governance and Pension Fund Administrators: The Chilean Case. 10/07 Rafael Doménech y Juan Ramón García: ¿Cómo Conseguir que Crezcan la Productividad y el Empleo, y Disminuya el Desequilibrio Exterior?. 10/08 Markus Brückner and Antonio Ciccone: International Commodity Prices, Growth, and the Outbreak of Civil War in Sub-Saharan Africa. 10/09 Antonio Ciccone and Marek Jarocinski: Determinants of Economic Growth: Will Data Tell? 10/10 Antonio Ciccone and Markus Brückner: Rain and the Democratic Window of Opportunity. 10/11 Eduardo Fuentes: Incentivando la cotización voluntaria de los trabajadores independientes a los fondos de pensiones: una aproximación a partir del caso de Chile. 10/12 Eduardo Fuentes: Creating incentives for voluntary contributions to pension funds by independent workers: A primer based on the case of Chile.

Page 20

Working Paper

Hong Kong, January 21, 2013

10/13 J. Andrés, J.E. Boscá, R. Doménech and J. Ferri: Job Creation in Spain: Productivity Growth, Labour Market Reforms or both. 10/14 Alicia García-Herrero: Dynamic Provisioning: Some lessons from existing experiences. 10/15 Arnoldo López Marmolejo and Fabrizio López-Gallo Dey: Public and Private Liquidity Providers. 10/16 Soledad Zignago: Determinantes del comercio internacional en tiempos de crisis. 10/17 Angel de la Fuente and José Emilio Boscá: EU cohesion aid to Spain: a data set Part I: 2000-06 planning period. 10/18 Angel de la Fuente: Infrastructures and productivity: an updated survey. 10/19 Jasmina Bjeletic, Carlos Herrera, David Tuesta y Javier Alonso: Simulaciones de rentabilidades en la industria de pensiones privadas en el Perú. 10/20 Jasmina Bjeletic, Carlos Herrera, David Tuesta and Javier Alonso: Return Simulations in the Private Pensions Industry in Peru. 10/21 Máximo Camacho and Rafael Doménech: MICA-BBVA: A Factor Model of Economic and Financial Indicators for Short-term GDP Forecasting. 10/22 Enestor Dos Santos and Soledad Zignago: The impact of the emergence of China on Brazilian international trade. 10/23 Javier Alonso, Jasmina Bjeletic y David Tuesta: Elementos que justifican una comisión por saldo administrado en la industria de pensiones privadas en el Perú. 10/24 Javier Alonso, Jasmina Bjeletic y David Tuesta: Reasons to justify fees on assets in the Peruvian private pension sector. 10/25 Mónica Correa-López, Agustín García Serrador and Cristina Mingorance-Arnáiz: Product Market Competition and Inflation Dynamics: Evidence from a Panel of OECD Countries. 10/26 Carlos A. Herrera: Long-term returns and replacement rates in Mexico’s pension system. 10/27 Soledad Hormazábal: Multifondos en el Sistema de Pensiones en Chile. 10/28 Soledad Hormazábal: Multi-funds in the Chilean Pension System. 10/29 Javier Alonso, Carlos Herrera, María Claudia Llanes y David Tuesta: Simulations of long-term returns and replacement rates in the Colombian pension system. 10/30 Javier Alonso, Carlos Herrera, María Claudia Llanes y David Tuesta: Simulaciones de rentabilidades de largo plazo y tasas de reemplazo en el sistema de pensiones de Colombia.

The analysis, opinions, and conclusions included in this document are the property of the authors of the report and are not necessarily property of the BBVA Group BBVA Research’s publications can be viewed on the following website: http://www.bbvaresearch.com

Contact details BBVA Research Asia 10/F Two International Finance Centre 8 Finance Street Central HONG KONG Phone: +852 2582 3111 E-mail: [email protected]

Page 21